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term-sheet-knowledge

Explain startup term sheet clauses, SAFE notes, and dilution calculations.

1|1|Updated Feb 17, 2026
Search Tags:#negotiation#startup funding#cap table#dilution#term sheet#SAFE note#convertible note
One-click install
npx skills add https://github.com/moonklabs/startup-plugins --skill term-sheet-knowledge
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: term-sheet-knowledge
Source: https://github.com/moonklabs/startup-plugins/tree/main/startup-ceo/skills/term-sheet-knowledge
Command: npx skills add https://github.com/moonklabs/startup-plugins --skill term-sheet-knowledge

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This Skill demystifies complex startup financing documents like term sheets, SAFE notes, and convertible notes, empowering founders to understand key terms and negotiate effectively.

Core Features & Use Cases

  • Term Sheet Explanation: Provides clear explanations of crucial clauses such as valuation, liquidation preference, anti-dilution, and board composition.
  • Financing Instrument Comparison: Differentiates between SAFE notes and convertible notes, outlining their structures and implications.
  • Cap Table Dilution Calculation: Demonstrates how different funding rounds and instruments impact founder equity.
  • Red Flag Identification: Highlights potentially unfavorable terms that founders should watch out for.
  • Use Case: A founder receives a term sheet and needs to quickly understand the implications of a "participating liquidation preference" and how it differs from a "non-participating" one.

Quick Start

Explain the difference between a SAFE note and a convertible note.

Frequently Asked Questions about term-sheet-knowledge

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I calculate cap table dilution for a new funding round?▼

Cap table dilution calculation tracks founder equity reduction by evaluating funding round sizes and instrument conversion rates. It demonstrates how SAFE notes, convertible notes, and priced rounds impact your ownership percentage.

What is the difference between a SAFE note and a convertible note?▼

SAFE notes and convertible notes differ primarily in debt structure and maturity dates. This Skill explains both financing instruments, outlining their unique structures and implications for startup funding.

How does participating liquidation preference affect startup payouts?▼

Participating liquidation preference allows investors to recoup their investment and share remaining proceeds, unlike non-participating terms. This Skill explains how these clauses impact founder payouts during an exit.

What are common red flags in a startup term sheet?▼

Common red flags in a term sheet include aggressive anti-dilution provisions and restrictive protective provisions. This Skill highlights potentially unfavorable terms and clauses that founders should watch out for.

How do I negotiate founder vesting and board composition?▼

Negotiating founder vesting and board composition requires understanding protective provisions and equity schedules. This Skill provides guidance on negotiation strategies to balance investor rights and founder control.

How do Korean stock purchase agreements work for startup funding?▼

Korean stock purchase agreements and convertible notes operate under specific local financial regulations. This Skill explains these specific Korean financial instruments to facilitate understanding of regional startup funding.

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